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Leo Consulting enters into a contract with Highgate University to restructure Highgate s processes for purchasing goods from suppliers. The contract states that Leo will

Leo Consulting enters into a contract with Highgate University to restructure Highgates processes for purchasing goods from suppliers. The contract states that Leo will earn a fixed fee of $22,000 and earn an additional $4,000 if Highgate achieves $40,000 of cost savings. Leo estimates a 60% chance that Highgate will achieve $40,000 of cost savings.
Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?

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